be extremely careful with CCs: Universal Default

[DirkAB]

My cars have been 2-3 years old when purchased, though recently I've turned to leasing.

Honestly, I think that leasing is not wise.

[Das Texan]

So if the transmission went out on your car and you broke your leg and had to miss some time at work within say two weeks on each other, you would be completely covered? If that is the case you wouldn't need to finance a television.

for the last two thats why you have insurance both medical and supplemental.

[Das Texan]

Honestly, I think that leasing is not wise.

i do agree on that one, for many of the same reasons regarding renting, which is essentially what you are doing.

[PM5K]

So if the transmission went out on your car and you broke your leg and had to miss some time at work within say two weeks on each other, you would be completely covered? If that is the case you wouldn't need to finance a television.

Well yes, I have enough to cover a new transmission, and I could get by if I broke my leg because I run my own business from home and a broken leg wouldn't change much, and even if it was say both arms, my number two guy can run things almost as well as I can.

That money is for exactly that though, emergencies, not televisions....

[DisgruntledLionFan#54,927]

Honestly, I think that leasing is not wise.

For you.

There are a ton of factors that go into getting a new car. There are no absolutes...

[DirkAB]

for the last two thats why you have insurance both medical and supplemental.

People that live paycheck to paycheck usually don't have very good insurance.

[Das Texan]

People that live paycheck to paycheck usually don't have very good insurance.

in the scenario you presented we were not discussing someone that lives paycheck to paycheck really.

[phyzik]

well, for those interested, read the following.

I deal with 2nd mortgages and loans all day long at work. The math isnt that hard once you understand how interest works, but most people would be suprised by how much they are paying in interest...

Lets run through a few numbers. First there is Per Diem, or daily interest gained. This is dependant on your interest rate at the time as well as your principal balance.

lets say I have a HELOC (Home Equity Line of Credit) for 10,000.00 @ prime minus .50%.... currently Prime is at 8.25% giving me an interest rate of 7.75% (this is how your bank will explain it to you btw if you ever call about your interest on your mortgage, its a regulation).

10,000.00 multiplied by 7.75% devided by number of days in the year.... this gives you a per diem of $2.12.

(principal x interest / days in the year)

now, assuming the principal balance of 10,000.00 doesnt change (I dont use any more credit or I dont pay more then minimum payment) and say I make my payments EXACLTY 30 days apart (which usually isnt the case for anyone) AND the Prime rate doesnt change within that month, I'm looking at paying $63.70 in interest for that one month. Lets say I was a day off, 31 days would be $65.82.

basically, best way to figure it is the date the last payment was applied to the date that your next payment would be applied, multiply those days to your daily interest.

lets say I paid 100.00, 63.70 would first go to interest, the rest (36.30) would go towards the principal, giving me a principal balance of 9963.70 for the next month to calculate on.

10,000.00 is nothing compared to what I've seen... there was one guy in New york who had a mortgage for something like 300,000.00 over a 30 year loan and ended up paying over 1,000,000.00 after it was all said and done.


I could go on and on with different equations (because honestly its different for each type of loan) but it gets pretty damn crazy.... especially when you get into 2nd mortgages and crap.

[Clandestino]

basically, boutons started this thread to about credit card companies... however anyone can do what they want... no one is forced to get a credit card

[DirkAB]

Well yes, I have enough to cover a new transmission, and I could get by if I broke my leg because I run my own business from home and a broken leg wouldn't change much, and even if it was say both arms, my number two guy can run things almost as well as I can.

That money is for exactly that though, emergencies, not televisions....

Maybe those were bad examples for you, but think of 2 fairly large expenses that would be out of pocket, whatever those might be for you in your situation.

Of course that money is for emergencies, point was I don't ever see anybody that is responsible enough to keep a nice little emergency fund being in the position to have to finance a television or any other want in the same ballpark. If you are financially responsible enough to think about future emergencies then you surely financially responsible enough to know how much interest you will be paying to finance.

There are instances that financing I suppose could be considered responsible, like if there was no interest for a period and you know for sure that the money won't be a stretch when the interest free period is up, or say the item was on sale and the interest on financing wouldn't be as much as what is saved on the sale.

[DisgruntledLionFan#54,927]

So it would cost you a little over $7500 over the course of 10 years, and you still owe the $10,000(which most people never chip away at).

[phyzik]

So it would cost you a little over $7500 over the course of 10 years, and you still owe the $10,000(which most people never chip away at).

yup, and thats assuming Prime stays the same... but it wont... its been going up. May 11th it went from 7.75% to 8.00%...... and sometime near june 27th it went from 8.00% to 8.25%.

[PM5K]

I actually only use my credit card for strip clubs, but that's probably a different thread for a different time...